Evaluate WMS functionality and EDI/API integrations, order accuracy and on-time delivery SLAs, warehouse footprint and racking for SKU density, labor models and seasonal scalability, and transparent billing that separates storage, handling, and value-added services to calculate true cost-to-serve.

A local 3PL reduces miles and transit time via optimized routing and consolidation, provides cross-docking to cut handling steps, enables inventory placement closer to demand, and leverages carrier contracts for competitive freight rates—together lowering landed cost and lead time variability.

Prioritize facilities with validated temperature zones, reliable power and backup systems, proper racking for cold-chain inventory, documented SOPs for handling and traceability, and WMS lot/expiry tracking to ensure compliance and minimize spoilage risk.

Include clear SLAs for OTIF, order accuracy, inventory accuracy, and lead times; flexible capacity clauses for seasonality; transparent rate cards and escalation mechanics; regular reporting cadence and audit rights; and defined dispute resolution and termination terms tied to KPI performance.